This article was first published on Dollars and Sense
The value of most things that we purchase suffers depreciation. Depreciation refers to the loss of value that an asset suffers over time.
Depreciation could be caused by a variety of reasons. For some items, it is caused by wear and tear. These include your furniture at home and the car that you are driving.
Others could be due to technologic advancements. For example, an iPhone 4 becomes worthless today (at least in Singapore) when we are all anticipating the iPhone 7 to arrive.